EPF dividend disappointing but better than other funds, says union

While the latest dividend rate announced by the Employees Provident Fund (EPF) is disappointing, it still inspired better confidence than the likes of pilgrims' fund Tabung Haji, Malaysian Trades Union Congress (MTUC) acting president Abdullah Sani Abdul Hamid says today. He said the people entrusted their hope in the funds where they parked their savings in, and as such, their confidence should not be shaken. He said, in that sense, EPF has done better than Tabung Haji, which was warned by Bank Negara over its poor financial practices. As such, the Kuala Langat MP urged EPF and other funds to keep to the straight path and always remind themselves of their fiduciary duty. "The likes of EPF must be reminded that they are trustees of other people's hard-earned money and as such must be responsible in the way they use the funds for investments. "The people's confidence must not be shaken, so in that sense, EPF has done better than the likes of Tabung Haji," Sani told The Malaysian Insider. Earlier this month, Tabung Haji announced an annual dividend of 5% for its depositors for 2015, amid controversy over its dwindling reserves revealed in a letter from Bank Negara to the haj fund. An additional 3% was also announced as bonus for depositors who have yet to perform the pilgrimage. For 2014, the pilgrims' fund paid out a dividend of 6.25% and a special bonus of 2%. EPF yesterday declared a dividend of 6.40% for 2015 with a total payout amounting to RM38.24 billion. Meanwhile, MTUC secretary-general N. Gopal Kishnam also said it was regrettable that EPF had declared 0.35% less than the dividend rate in 2014, which was at 6.75%. "We are disappointed, we were hoping it would be more or at least similar to last year's, but I suppose it is not totally bad. "My advice to EPF to ensure higher dividends in the future is to be prudent in their investments." The union has been pushing for EPF to declare a higher dividend before the retirement fund's announcement, saying that a higher dividend would add more value to employees' savings. – February 21, 2016.]]>